You can purchase an item you need for a project for $10,000 and it has daily operating costs of $500, or you can lease the item for $700 per day. On which day will the purchase cost be the same as the least cost?

A) Day 5

B) Day 10

C) Day 50

D) Day 100

Question

Business

Matthew Munoz

19 February, 22:34

You can purchase an item you need for a project for $10,000 and it has daily operating costs of $500, or you can lease the item for $700 per day. On which day will the purchase cost be the same as the least cost?

A) Day 5

B) Day 10

C) Day 50

D) Day 100

+2

Answers (1)

Know the Answer?

Cristina Sparks · Answer 1

Option (C) Day 50

Explanation:

Data provided in the question:

Purchasing cost of the item needed in project = $10,000

Daily operating cost = $500

Lease amount per day received = $700

Now,

For the purchase cost be the same as the least cost

The total cost should be equal to the total lease received

let the 'x' be the day on which purchase cost is equal to lease cost

thus,

$10,000 + $500x = $700x

or

($700 - $500) x = $10,000

or

$200x = $10,000

or

x = 50

Hence,

Option (C) Day 50

You can purchase an item you need for a project for $10,000 and it has daily operating costs of $500, or you can lease the item for $700 per day. On which day will the purchase cost be the same as the least cost?A) Day 5B) Day 10C) Day 50D) Day 100

You can purchase an item you need for a project for $10,000 and it has daily operating costs of $500, or you can lease the item for $700 per day. On which day will the purchase cost be the same as the least cost?

A) Day 5

B) Day 10

C) Day 50

D) Day 100